So much so that well-respected Swiss asset manager Egon von Greyerz of Matterhorn Asset Management
warns that they will have no choice but to ramp up monetary printing at
an accelerated pace in 2014. Failure to do so will likely seize up the
global flow of credit and lead to a massive financial collapse as
liquidity gets sucked out of the system.

The problem, of course, is that policy makers have backed themselves
into a corner and their only remaining option will likely lead to an
even more disastrous outcome; one that will have a direct impact on your
long-term financial well being and quality of life.

In the following interview with King World News
von Greyerz highlights the irreversible problems faced by the economic
system, risks to global stability, the likely course of action to be
taken by governments, and the end result when they fail.

The world is exposed to danger to an extent that it hasn’t been for a
long time. So the possibility that something unpleasant or unwelcome
will happen is substantial.

[…]

Paul Craig Roberts gives very interesting interviews on KWN. According
to Roberts, the risk of a world war is high. He likens the current
situation to the start of World War I. Of course we hope that there
will not be another world war, but the risks are there.

[…]

Another major risk is, of course, the economic situation. Never have as
many major countries been bankrupt. The list of these countries is
getting longer all the time.

[…]

Coming back to all the risks we are facing, personal savings will either
be bailed in or destroyed by hyperinflation. The same thing will
happen to pensions and other investments.

To have a job will be a privilege in a world of mass unemployment.

We are already seeing this in many countries in Europe. And of course the real unemployment rate in the U.S. is 23 percent.
All this is likely to lead to famine and civil unrest in many countries.

So the risks are massive and the real solutions are non-existent.
Of course I hope I am wrong in these forecasts, but people must be aware of these risks.

If they fail to print the scam is exposed for the Ponzi scheme that it
is almost instantaneously as stock markets and commerce around the world
crashes due to lack of stimulus.

If they print, the can gets kicked a bit farther down the road for a
while longer, but eventually buckles under the weight of government
debt, rising interest rates and leverage.

The
only remaining choice at that point will be asset forfeiture on a mass
scale. Think Cyprus deposit confiscations on a scale of hundreds of
millions of people. Either that or the currency printing hyperinflates
away the debt.

In both cases the people will take to the streets. And, they’ll be
holding Molotov cocktails and assault rifles, not protest signs.

According to Egon von Greyerz the monetary problems will cause such a
disconnect in the system that asset prices are likely to skyrocket
relative to their currencies:

Gold must not be seen as a trading investment but as a long-term
wealth-preservation asset. People should just buy physical gold and
hold it outside the banking system. The gold price will be at multiples
of the current price in a few years’ time. That price could be 10
times today’s $1,300 level ($13,000), 20 times today’s level ($26,000),
or even thousands of times higher in a likely hyperinflationary
scenario.

As an asset manager von Greyerz focuses on precious metals. But the fact
is that any asset of necessity will see its value skyrocket.

The time to prepare for a general destabilization of our economic and
financial systems is now. That means acquiring assets that will, at the
very least, maintain their value when all else fails.

Dry commodities like rice, beans, grains and other foods that can last a lifetime are
assets that you will use and can hold in your physical possession
without “counter party risk” should paper investments collapse.

Productive land
where you can raise your own livestock and grow your own food may drop
in price during a real estate crash, but its value to you personally
could be extremely important.

The ability to produce energy by disconnecting from the grid as
costs for propane and electricity necessarily rise is another excellent
“investment” to consider.

Learning and perfecting new trade skills
(or developing “products”) that can be used as barter when traditional
methods of commerce collapse will also be essential. Look no further
than the underground economy of Greece following their collapse for an idea of how important this “asset” will become.

Firearms and ammunition. If civil unrest takes hold and law enforcement is overwhelmed, it will be used by criminal elements as an opportunity. As time progresses, crime will undoubtedly rise. Be prepared to protect what’s yours. Moreover, when was the last time you saw a downward price trend in self defense related products?

And, of course, precious metals with which to trade when dollars are
no longer trusted should be part of any diversified prepper portfolio.
We recommend first starting out with various physical silver units and working your way up to gold if financially feasible.

Yes, the global financial, economic and political systems are under
extreme stress and there is a distinct possibility that a collapse is
inevitable at this point.